Beauty company Ami Colé, a Black-led enterprise, to cease operations
In the ever-evolving world of beauty, the closure of Ami Colé, a startup that specialised in makeup for individuals with darker skin tones, has left a significant impact. Launched in 2021 and sold through Sephora, Ami Colé quickly gained celebrity favour, with stars like singer Kelly Rowland and actress Mindy Kaling becoming fans [2].
Despite the brand's success, Ami Colé will shut down in September 2023. The primary reason for this decision was financial unsustainability in a challenging market. Inconsistent sales performance, the high cost of securing and maintaining prime retail shelf space, and intense competition from large corporate brands with deeper financial resources were key factors [1][3].
The founder of Ami Colé, Diarrha N'Diaye-Mbaye, was one of the first Black women to raise more than $1 million in venture capital [8]. However, despite the post-2020 surge in investor interest in Black-owned brands, Black founders continue to face significant funding challenges. This gap between corporate commitment and actual support contributed to the brand’s closure [1][3][5].
The political backlash against DEI initiatives has made securing long-term investment in Black-owned businesses increasingly challenging. This, coupled with the venture capital drought affecting many startups in 2025, exacerbated financial strain, impacting cash flow and growth viability [1][3].
The volatility in retail sales—sometimes selling out quickly and other times stagnating—added unpredictability that strained resources. The market realities for small Black-owned beauty brands, contrasting with the advantages held by large legacy companies, created barriers Ami Colé ultimately could not overcome [1][3][5].
Diarrha N'Diaye, the founder of Ami Colé, remains optimistic about the future despite the shutdown of her brand. She joins other Black founders in the beauty industry, like CurlMix, who are getting creative about alternative sources of funding [7].
The closure of Ami Colé is a setback for the representation of darker skin tones in the beauty industry. The awareness and impact created by Ami Colé for underrepresented consumers are obvious [6]. The venture funding for Black founders has dropped to its lowest level in years, at 0.4%, according to Crunchbase [4].
[1] - The Information [2] - Forbes [3] - TechCrunch [4] - Crunchbase News [5] - Fast Company [6] - Essence [7] - Black Enterprise [8] - VentureBeat
- The financial struggles of Ami Colé, a startup in the fashion-and-beauty sector, led to its closure in September 2023, despite gaining celebrity favor and selling through Sephora.
- The founder of Ami Colé, Diarrha N'Diaye-Mbaye, was one of the first Black women to secure more than $1 million in venture capital, but Black founders still face significant funding challenges.
- Inconsistent sales performance, high retail shelf space costs, intense competition, and a venture capital drought affected Ami Colé's financial stability, leading to its closure.
- The political backlash against diversity, equity, and inclusion (DEI) initiatives and volatile retail sales added to the financial strain faced by small Black-owned beauty brands.
- Diarrha N'Diaye-Mbaye, despite the closure of Ami Colé, remains optimistic and is exploring alternative sources of funding, joining other Black founders in the beauty industry.
